FCC, iHeart Reach Deal on Payola Safeguards

RADIO ONLINE | Thursday, July 9, 2026 | 1:59pm CT

Federal Communications Commission

The FCC has reached a consent decree with iHeartMedia resolving an investigation into the company's compliance with federal payola rules, establishing new reporting, training and disclosure requirements aimed at protecting artists from improper pressure tied to radio airplay and live event appearances.

The agreement stems from an Enforcement Bureau investigation launched in 2025 into allegations that artists may have been pressured to perform at iHeart-sponsored concerts and festivals for free or reduced compensation in exchange for more favorable airplay -- a practice commonly referred to as "showola." While iHeart agreed to implement a comprehensive compliance plan, the company made no admission of liability or violation of law.

Under the consent decree, iHeart will appoint a corporate compliance officer, establish market-level compliance contacts, implement mandatory employee training, maintain a whistleblower hotline, and file compliance reports with the FCC over the next three years. The company also will notify artists invited to perform at its events that participation will not affect airplay on its stations and will advise them that suspected payola violations can be reported directly to the FCC.

The agreement also requires enhanced public disclosures for major iHeart events, including identifying participating artists, whether they received compensation, and providing greater transparency regarding artist performances and any related sponsorship arrangements. iHeart stations also will be required to direct listeners to online disclosures for designated events.

"The FCC is committed to ensuring that artists - especially up-and-coming ones - get a fair shake in their dealings with the broadcast industry," FCC Chairman Brendan Carr said. "Today's agreement adds significant new protections and offers the FCC greater transparency to ensure that artists retain their right to decide when and where they will perform."

The investigation followed concerns raised in January 2025 by Senator Marsha Blackburn, who warned the FCC of reports that some broadcasters were offering additional airplay in exchange for free performances, with the implication that artists declining invitations could receive less airplay. The FCC subsequently reminded broadcasters that undisclosed payola arrangements violate both federal criminal law and the Communications Act.

The Enforcement Bureau said the consent decree resolves its investigation into iHeart's sponsorship identification practices and terminates the matter without further enforcement action, provided no new material evidence emerges.